Linking Communities in the Information Society : Applying ICTs for livelihoods

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Linking Communities in the Information Society
Applying ICTs for livelihoods
Chetan Sharma -Founder
Datamation Consultants Pvt. Ltd.

Datamation Foundation
(A Non-Profit Organization)
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On Invitation of the
European Bank for Reconstruction and
Development, JCIF, JICA and Keio University ICT
Policy Reform and Rural Communications
Infrastructure Seminar
August 23-August 31, 2004
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CAN ICTs REDUCE POVERTY AND UNDER-DEVELOPMENT ?

• Even though 200 300 Million are progressing in
  India 700 800 Million people are excluded
  from the growth process
• Current inequalities have their origin in the
  industrial revolution and have worsened
• The World Bank reports even in last 5 years from
  1998 to 2002, the share of income of the poorest
  10 in the world fell by 25 while that of the
  richest 10 rose by 8.
• (By Yuri Dikhanov and Michael Ward, 2001)
• Education for all still remains a dream Over 40
  population is illiterate.

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• Even if some economies such as Indian economy
  grow at scorching pace of 9 10 per annum the
  high growth rate cannot bridge disparities
  eradicate poverty.
• Estimates of global unemployment vary from
  45-35 Continuing transformations in the
  economies from agrarian, industrial to services
  economy and the non- competitiveness of
  Agriculture and Industry has made a large part of
  the work force redundant.

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DAUNTING TASK AHEAD FOR THE SOCIAL
ENTREPRENEURS AND FOR DEVELOPMENT EXPERTS Basic
threshold of economic sustainability is necessary
for a social change -Do ICTs have the potential
to eradicate poverty ? -Can jobs be created in
the ICT sector ?Can ICTs enable livelihoods?
-Do the voiceless and under-privileged have a
place in the burgeoning ICT sector ? -Can ICTs
facilitate skills-development? -Can ICTs
facilitate market-linkges?
Past Success Stories
Cable Operators, Pay Phone Operators
Current ICT Led Business Models

• Diversified IT Service Companies
• Specialized IT Services

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SPECIALIZED IT SERVICES

• Call Centres
• Transaction Processing
• Transcription Houses
• Portals/Vortals/Exchange
• Internet based services
• Multi-purpose tele-centers
• GIS Applications
• Content Aggregation Consolidation
• Tele-Medicine
• Information Services
• Data Centers
• On-Line/Off-Line Computer based education
• On-Line Govt. Services E-governance

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Estimated number of direct beneficiaries in
India (employment in the sector)
4.5 5 million people over the next 5 Years
Estimated number of indirect ICT beneficiaries
24 26 million people over the next 5 Years
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INDIAN ICT SUCCESS STORIES AFFECTING RURAL
MASSES

• GYANDOOT Rural E-Governance project in Dhar
  (M.P)
• UJJAS Womens newsletter and public radio,
  Gujarat
• AGRI-CULTURE/FISHERIES PROJECT M.S. Swaminathan
  Foundation, TamilNadu Pondicherry.
• ANDHRA PRADESH HEALTH PROJECT Supported by the
  World Bank
• Vijay Wada, Andhra Pradesh few other State
  Govt. sponsored E-Governance projects
• TARAHAAT, RASI, DRISHTEE

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Datamation ICT enabled Livelihood Opportunities
Poor Households
Women
Men
State Institutions
Civil Society Institutions
DATAMATION Effort to Strengthen this link
Opportunity Mobility and Access to Resources
Key
One - Way relationship Two Way
relationship Weak links
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Definitions of Poverty
Dont ask me what poverty is because you have met
it outside My house. Look at the house and count
the number of holes. Look at my utensils and the
clothes that I am wearing. Look at everything
and write what you see. What you see is poverty.
-A Poor Man, Kenya 1997
Poverty is humiliation, the sense of being
dependent, and of being forced to accept
rudeness, insults, and indifference when we seek
help. -Latvia 1998
Your hunger is never satiated, your thirst is
never quenched you can never sleep until you
are no longer tired. -Senegal 1995
Its the cost of living, low salaries, and lack
of jobs. And its also not having medicine, food,
and clothes. -Brazil 1995
When I leave for school in the mornings I dont
have any breakfast. At noon there is no lunch,
in the evening I get a little supper, and that is
not enough. So when I see another child eating, I
watch him. And if he doesnt give me something I
think Im going to die of hunger. A 10-year-old
child, Gabon 1997
Source- Voices of the Poor Can Anyone Hear Us?
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• Mission Statements of Datamation Consultants (A
  registered company under the Indian Companies
  Act) AND Datamation Foundation (A registered
  non-profit organization)
• Deliver high quality diversified, responsive,
  cost effective, ICT services provided by a
  predominantly rural marginalized deprived
  workforce.
• Cross new thresholds and new frontiers in
  computing and processing applications year after
  year
• Leverage new opportunities for the creation of
  job opportunities for rural communities--in the
  formal and informal sector
• Plough back profits in ICT initiatives to
• -- help improve the state of the poor and the
  quality of their lives by implementing cutting
  edge ICT enabled innovations
• -- help create large scale employment
  opportunities by enhancing their vocational
  skills
• -- help implement specific programs targeted
  towards income generation and poverty alleviation
  of rural communites
• -- help educate marginalized people using
  innovative on- line and off-line ICT enabled
  training materials

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DATAMATION A CASE STUDY OF INNOVATING ICT
SERVICES FOR LARGE SCALE EMPLOYMENT GENERATION
FOR MIGRANT RURAL COMMUNITIES

• One of the early starters in existence for
  over 17 years.
• Pragmatic business model based on low cost
  infrastructure, networked PC operating
  environment.
• Invests significantly in people not as much in
  equipment and infrastructure (in proportion).
• Operates frugally, kept costs under tight control
  by stringent project monitoring and quality
  control.
• Internal organic growth No borrowing/funding
  from any source.
• Save on wage costs by Cost Of Living Index
  (COLI)highly decentralized BUSINESS model

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• Aggressive marketing both in the local
  international markets
• Sustained growth in sales turnover/meteoric
  growth in sales for the last 3 years.
• Equal focus on the Indian International markets

• Diversified portfolio of services
• 1) Document Management
• 2) Scanning Imaging
• 3) Data conversion Data Entry
• 4) Application Programming
• 5) E-Services, Setting up of Portals/Vortals/E-Co
  mmerce solutions
• 6) Rastorization, Vectorization GIS
  applications

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• Customer Relationship Marketing (CRM) Services
• Database Marketing
• Image Processing
• Market Research
• Logistics and Fulfillment
• Business Advisory Services
• Rural ICT initiatives

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• Current Manpower strength of 2600 whole-time
  staff and operates from 30 locations
• Bigger city offices service local Indian clients
• International projects are serviced from
  non-metro locations some of which are very small
  towns consequently net profitability on the
  international projects is significantly higher.
• No segment of the Indian and International
  market has been left untouched.

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• Involved and personalized client servicing
• High quality at competitive pricing
• Consequently client retention rate is 90.
• Estimated sales turnover for FY 2004 US 10
  Million
• Projected turnover growth US 50 million by FY
  2004 2005
• Projected jobs at Datamation by FY 2005-2006 ?
  5000
• 85 force comprises women deprived,
  marginalized people including physically
  handicapped.
• Fully law abiding and statutory compliant.

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DATAMATION AN ENDURING PARTNERSHIP BETWEEN
PRIVATE AND VOLUNTARY SECTOR FOR EMPOWERING THE
DISADVANTAGED TO GET JOBS IN THE INFORMATION
SOCIETY

• FRAME WORK
• Consistent interface and partnership with select
  voluntary groups imparting IT education to the
  deprived marginalized. Communities Rural
  Youth, slum children, dowry victims, people from
  economically weak background for the creation of
  sustainable livelihood

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• OBJECTIVES
• Recruit qualifying candidates from the voluntary
  groups in whole-time employment at Datamation and
  at client sites. Lobby with other private sector
  companies for providing employment opportunities
  to the deprived based on our success story
• Provide technical inputs to the voluntary groups
  for improving the quality of their IT education.
• Since target students are from very deprived
  backgrounds, innovative tools are deployed for
  personality development, life-skills improvement
  and for sharpening the understanding of IT
  concepts.
• Support curriculum development in local languages.

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PARTICIPATING RURAL COMMUNITIES VOLUNTARY
GROUPS IMPARTING ICT EDUCATION Nari Raksha
Samiti (A womens self-help group imparting IT
education to rural women)

• Prayas ( A non-profit dedicated for educating
  rural youth, juvenile delinquents slum kids)
• Deepalaya (A non-profit dedicated for
  rehabilitation of slum kids )
• . TARAhaat.com( A non-profit dedicated to IT
  education in rural areas)
• Dr. Reddys Foundation (Imparting ICT Education
  to rural youthO)

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• Udayan (An orphanage for rural girls run by
  socially conscious families)
• Arise Shine Church International (A registered
  orphanage)
• Help Care Society (Registered society supporting
  care of the girl child).

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• How this works ?
• Select jobs within Datamation are set aside for
  the voluntary groups imparting ICT training to
  rural youth.
• Recruitment from the voluntary groups expected to
  increase manifold with the increase in sales
  turnover at Datamation.Support from the Corporate
  sector is also being sought.
• Non-discriminatory background.

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• Post-recruitment , A dedicated group is
  responsible for the mentoring training new
  recruits from rural areas.
• Mentoring includes exposure to professional work
  environment, basic etiquettes, work ethics,
  quality standards, quality assurance process,
  fundamentals of data conversion document
  conversion business.
• Post-mentoring/training session new recruits
  work on live projects.
• Ongoing refresher / reinforcement courses.

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CHALLENGES

• Deprived background mandated to deliver in a
  highly competitive industry.
• Past legacy very difficult to overcome-requires
  lot of effort and patience to heal.
• Technical perception being low constant refresher
  programs needed. Alternate skills development is
  also necessary and is a special focus at
  Datamation.
• Making disadvantaged work in a competitive,
  professional industry is an awesome task.
• Women employees need constant counseling and
  mentoring.

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Challenges for Youth from Rural backgrounds in a
long term ICT career

• Difficult to sustain women employees in a high
  pressure IT industry after they get married
  have children (only 40 women continue working
  after the first child).
• Assimilation process between the have and
  have-not is slow. Skills upgradation does not
  happen at a faster pace.

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DATAMATION - PARTNERSHIP BETWEEN PRIVATE
VOLUNTARY ORGANIZATIONS FOR LONG TERM ICT CAREER
OF RURAL YOUTH
Initiative 1-B

• Framework
• Fund raising support for almost all Voluntary
  Groups/ NGOs in India for the past decade.
• Objectives
• Use cutting edge database driven fund raising
  drives
• Integrated 4 channel deployment for fund raising

• Postal System
• Tele-Marketing
• Internet
• Direct Dialogue

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Participating Rural Communities Voluntary
Groups for
Mobilizing Resources From services

• Help-Age India
• SOS Children Villages
• UNICEF
• Global Cancer Concern
• Child Relief You
• Bombay Leprosy Mission

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• Deepalaya
• Oxfam
• World Children Fund
• Green peace
• Arpana Trust
• And hundreds of voluntary
• groups from India and
• World wide.

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HOW THIS WORKS / DELIVERABLES

• Datamation possesses Asias largest most
  authentic Consumer Business database segmented
  across categories. (total repository is more than
  40 million names)
• Strategic inputs for Fund-Raising
• Direct Mailing Response handling support for
  Fund-Raising drives.
• Donation accounting including issue of receipts,
  tax exemption certificates.
• Outbound tele-calling for fund-raising
• Internet based campaigns to raise funds
• Design of Donor gets friend programs
• Implementation of Dialogue program

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DATAMATION FOUNDATION(A CHARITABLE TRUST
ENJOYING INCOME TAX EXEMPTION AND FCRA APPROVAL)
Datamation Foundation has been set up to design
and implement innovative ICT project targeted
towards women and marginalized communities.
Gender and poverty alleviation/employment
generation are the key goals of the trust.
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Datamation Consultants
Datamation Foundation
Gets from Foundation
Gets from Datamation Consultants
Cutting edge Innovative best ICT practices
worldwide/knowledge base
Organizational Goals
Volunteers
Financial Support
Technical, Admin Logistical Support
Business Strategy Roadmap
Active participation of voluntary groups
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Datamation Reaching the Unreached Communities
with ICTs
Initiative 2

• Rural Community Multi-Media Centres (CMCs) based
  on entrepreneurial models have been set up in
  five different parts of the country. Women have
  been involved in setting up of Multi-Media
  Centres.
• Pilot projects have been entirely self funded and
  are operated by our staff. UNESCO has provided
  mentoring support.
• Services delivered by the CMCs Market linkages,
  Computer Services, Job Work, E-Mail, Net-Surfing,
  Computer Office Service, E-Learning, Marketing
  support.
• Kiosks also offer telephony support including
  VoIP.
• CMCs emerge as a meeting point for the
  Communities.
• Access to www.gaonshehr.com (a site dedicated for
  rural communities and to the villages towns of
  India) is being developed by Datamation.
• Connectivity scenario varies from location to
  location.

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• Local language content in Indian languages such
  as Databases on Agricultural Practices, Arts
  Crafts, Culture, Vocational skillshave been
  deployed. The kiosk is a Rural Knowledge
  Centre
• Lobbying with the local district
  administration to make available title deeds of
  property/land records over the internet apart
  from activation of various citizen services such
  as municipal services, colleges/schools
  admissions, property-taxes and other tax records
• The ICT centers will be handed over to the local
  community after 2 3 years of profitable
  operation
• Scale to adjoining villages and towns after six
  months.
• Deliverables Self-funded Rural ICT Centers,
  Content
• Estimated of beneficiaries 100 mebers from
  different communities in two years time.

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INITIATIVE 3
SKILLS ENHANCEMENT, MARKET LINKAGES FOR THE RURAL
COMMUNITIES LIVELIHOODSA RISK MITIGATION(RM)
STRATEGY
Unskilled Poor face maximum risk and threat to
their lives, health, home and hearth. Early
empirical evidence conclusively establish
relevance of an integrated ICT enabled approach
in Training and Capacity Building. Skills
development for mitigating the risks for the poor
has not been reinforced to the communities.
Consequently non-marketable, non-competitive
skills evolve over a period of time amongst the
rural communities. .
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• Worst Marginalized communities dont even gain
  equitable access to the
• Learning materials and to Practical Market
  exposure. Consequently
• marginalized communities produce outdated
  Products that fetch poor returns
• for the rural communities.
• gt Production, Distribution of products made by
  the poor gets into a
• quagmire of exploitation, penury and debt.
• Realizing above, an integrated Risk Mitigation
  Policy was formulated.
• Heavily dependent on Entrepreneurial Development,
  Corporate Social
• Responsibility (CSR), Public Private Partnership
  (PPP) and Philanthropy.
• Strategic objectives of RM Strategy are
• Communities conserve their assetsland and
  home, craft, dairy, health
• Communities upgrade their basic education and
  marketable skills
• Communities get organized and reach out to
  mentors for selling.

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REALIZING ABOVE

• DATAMATION FOUNDATION EMBARKED UPON AN
  AMBITIOUS
• PLAN OF DEVELOPING VOCATIONAL SKILLS BY SEEKING
  INPUTS FROM VOCATIONAL INSTITUTIONS,
  POLYTECHNICS, PRIVATE TRADE AND SUBJECT MATTER
  EXPERTS IN
• gtEMBROIDERY
  BASKET WEAVING
• LIQUID SOAP MAKING
  PAPER BAG MAKING
  gtBEAUTICIAN
  CLOTH BAG MAKING
• FOOD PRESERVATION
  MANAGING TIFFIN CENTER
• BRIDAL MAKE-UP
  TAILORING--BASIC
• GIFT PACKAGING
  COOKERY- NEW CUISINES
• CHALK MAKING
  DRESS MAKING
• BOOK BINDING
  STATIONARY ITEMS
• LEATHER ACCESSORIES
  AGGARBATI
• FOOD PROCESSING
  HOME FURNISHING
• POULTRY AND FISH FARMING BEE FARMING
• RADIO, HOME APPLIANCES REPAIR MANAGING A
  SWEETS SHOP
• ROOFING TILES/FLOORING TILES TRACTOR
  REPAIR
• BICYCLE REPAIR
  BOOK KEEPING/ACCNTG.

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E-Learning for skills development

• Several vocational and income-generation, skills
  enrichment modules have been developed.
  Combination of traditional and modern skills
  based on a detailed markets needs assessment.
  Changes in consumer preferences are kept in mind
  while designing the modules.

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SIGNIFICANTLY VOCATIONAL SKILLS CONSTITUTE ONE
PARET OF TRAINING- MAJOR FOCUS IS ON
EMPOWERMENT , PERSONALITY DEVELOPMENT
CONFIDENCE BUILDING, LIFE- SKILLS
HEALTHPRE-NATAL/POST-NATAL CARE, NUTRITION,
BASIC REMEDIES, TB, HIV/AIDS, DENGUE/MALARIA
THESE MATERIALS HAVE BEEN DEPLOYED IN DATAMATION
FOUNDATIONS ICT CENTERS APART FROM OTHER
SITESGYAN SANCHAR, TARAHAAT, CHANGE INITIATIVES,
SITA ADEQUATE BACKING OF TRAINED COUNSELORS
/ FACILITATORS FOR USING INFORMATION AND TRAINING
MATERIALS FOR INCOME GENERATION ICT-
MATERIALS DEPLOYED VIA ALTERNATE CHANNELS
INTERNET, CABLE TV WIRELESS FORMATION OF
SELF-HELF GROUPS. INTERFACE WITH ADMIN LOCAL
GOVTS FOR GAINING ACCESS TO CREDIT. SEEKING
FINANCIAL SUPPORT OF UNESCO, WORLD BANK,
SEVERAL AGENCIES OF THE GOVT. OF INDIA.
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INITIATIVE 4
DATAMATION NEW OPPORTUNITIES FOR THE
DISADVANTAGED IN THE INFORMATION AGE
gtDIRECT MARKETING CORPORATES HAVE A CONTINOUS
NEED TO ACCESS NEW MARKETS, NEW CONSUMERS AND
OLD CONSUMERS TO SELL MORE CONSEQUENTLY a)
THROUGH COMMUNITY MOBILIZATION EFFORTS WOMEN
YOUTH ARE BEING TRAINED TO BECOME DIRECT
MARKETEERS FOR END-USER / INSTITUTIONAL
SALES b) SALES TEAMS ARE PROVIDED INFORMATION
TO ACCESS HOUSEHOLDS / INSTITUTIONS. c)
SALES TEAMS SELL PRODUCTS AND COLLECT INFORMATION
d) FOR THEIR EFFORTS THEY GET PAID FIXED COSTS
AND INCENTIVES e) SALES ORDERS GET FULFILLED
BY CORPORATE f) INFORMATION GETS CAPTURED INTO A
MICRO-CREDIT DATABASE g) INFORMATION IS TABULATED
AND PROCESSED FOR ENHANCING COMPANYS
COMPETITIVENESS
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• ESTIMATED BENEFICIARIES
• CURRENTLY 100 EXPECTED TO INCREASE TO OVER 2000
• BY THE YEAR END.
• END DELIVERABLES
• SALES ORDERS
• MICRO-CREDIT DATABASE OF
• SOCIAL/RURAL SECTORS
• END CONSUMER PROFILES
• PARTNERS NESTLE, UNILEVER, ICI PAINTS, MAX
• NEWYORK LIFE INSURANCE, HINDUSTAN TIMES

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Advantages of the Rural Communities, Private
Sector, Voluntary groups working together.

• Sustainable Replicable elsewhere
• Wider participation of rural market ensures
  continued involvement of all stakeholders in all
  round, holistic growth prosperity of the rural
  areas
• Lesser conflict, lower manpower attrition
  greater stability at the work place
• Wider perspective on work business makes
  business model highly endurable profitable

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